Abstract: The Medium and Long-Term Plan for the Development of Science and Technology Development (2006–2020) and the national strategy of indigenous innovation were formulated amid globalization and fiercer international competition in science and technology. This paper briefly elaborates the major elements of the Plan and assesses its implementation. Some strategic moves are discussed on how China’s S&T systems meet new challenges. This paper asserts that the indigenous innovation strategy was inevitable for China given the country’s social and economic development and the Plan was created to realize this strategy. The major goals of the Plan are expected to be achieved.